_{Presented by Astra Properties LLC}
Smart Strategies to Safeguard Your Investments Against Market Downturns
_{By Nicholas Burrus · 12/06/23
Thanks for tuning in to todays read! Read time is roughly 6 mins.}

Good morning, Happy Wednesday!

We hope you’re entering this midweek strong 🏋️ 

Some of you own property or even have a whole portfolio.

But how does one continue to grow despite the challenges in the market?

Let’s find out

Buying a property in 2024? Here's how to protect yourself from a weak market.

Slowing rent growth, high interest rates, and credit risk have dragged valuations down to a measly 15% to 20% for multifamily assets.

We know some players out there have reduced or stopped their acquisitions completely because of the slump. 

So what can you do to protect your investments?

Investing in a commercial asset in uncertain times is risky, but it’s not all gloom and doom in 2024. There’s a light at the end of the tunnel!

It is possible to invest in a commercial asset and make the most of your investment without taking too much risk.

How?

Conduct a sensitivity analysis!

Taking a sensitivity analysis is one of the most effective ways to protect yourself from a weak market. It helps evaluate the risks and rewards of spending money on a property during unpredictable times.

How to conduct a sensitivity analysis?

It’s easier than you think.

Commercial properties are priced based on cap rates and net operating income, aka NOI.

Cap rates help figure out how much money a commercial asset might make. The rates will depend on specific areas and asset classes.

On the other hand, NOI shows how much profit an asset makes by taking away the property's operating costs from its total income.

Before conducting a sensitivity analysis, ask yourself:

• How long will you keep the asset?

• What Net Operating Income (NOI) do you expect to earn from the property?

• How will fluctuations in cap rates affect the future of your investment?

Figuring out CRE's potential risk and reward isn't as complicated as it sounds. Here's what you should do:

The results give you an idea of how to continue making money off your investments with less risk.

💫 What Else is Poppin? 💫 

AI Could Take Over Your Holiday Shopping Soon

Imagine a world where you never have to do one bit of holiday shopping again.

Sounds like a dream, right?

Already, Microsoft's Bing and Google's Bard can give instant answers when you're shopping. Even OpenAI's ChatGPT can do real-time searches if you're using its paid plan.

Now retailers are looking into developing "bot shopping assistants" to scan sites to make holiday shopping even easier. These bots could:

• Check reviews

• Recommend the best products

• Find items before they sell out

• Conduct price comparisons

• List pros and cons

• Find cheaper alternatives

On Microsoft's CoPilot, formerly known as Bing Chat, you can ask for the best quality product to buy right now, and the AI will list options complete with links to articles and reviews. 

But if you think retailers are going Skynet on shopping real soon, think again. The technology isn’t perfect, at least for now.

AI tech is still developing. There’s still a long way to go before shopping becomes 100% AI-powered. These days, some bots are still recommending outdated and less-than-impressive deals, but the results are pretty promising.

Bottom line:

In the near future, bots will do the shopping for you. That means no more driving around the parking lot for hours looking for a spot, no more bracing for Black Friday madness, and definitely no more queuing at the cashier! 

Speaking of Bots... 🤖 

Amazon is using AI to deliver packages, and dispatch time has never been faster.

Cyber Monday is D-day for most retailers, and Amazon made sure to rake in MORE profits and leave competitors in the dust by offering faster deliveries using AI.

The e-commerce giant delivered within 11 minutes after ordering an item at a same-day facility.

AI is also used to analyze and plan delivery routes, predict climate changes and traffic situations in real-time. Amazon is also using AI to predict demands for over 400 million products to avoid shipping delays during the holiday season.

According to Tye Brady, Amazon Robotics' chief technologist, AI will touch every piece of their supply chain - generating 700 new jobs related to robotics and automation.

Catch the latest episode of the AstraCast podcast!

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You can catch me and Marcos on YouTube, and soon Spotify! Catch up with us as we bring on guests from all parts of the industry covering everything from real estate, personal development, to growing a business through acquisitions, rentals, and renovations.

Don’t be shy, check us out here!